Continuum Wind Energy looking for equity investors to raise $300 million in capital

Singapore-based Continuum Wind Energy, which has an India-centric focus, is scouting for equity investors to raise $300 million of fresh capital after a deal to sell stake to the now bankrupt renewable power company SunEdison collapsed last year.Rachita Prasad&Baiju Kalesh | ET Bureau | Updated: July 14, 2016, 14:22 IST

MUMBAI: Singapore-based Continuum Wind Energy, which has an India-centric focus, is scouting for equity investors to raise $300 million of fresh capital after a deal to sell stake to the now bankrupt renewable power company SunEdison collapsed last year.

“We are looking to raise about $300 million equity capital and have appointed investment bank Moelis to advise us on this raise,” said Arvind Bansal, chief executive at Continuum Wind Energy.“The capital raise may contain small portion of secondary sale of securities but is primarily a growth capital round through fresh issue of equity.” “This will dilute the existing shareholders but a sale of the company is not contemplated at all. Morgan Stanley’s fund still has life of another 6-7 years and they will continue to remain significant shareholders in the company after the capital raise,” he added.

A spokesperson for Morgan Stanley Infra Partners, which manages $4 billion globally, declined to comment. “Morgan Stanley wants to continue in Continuum as a significant shareholder,” a person close to the development said.

Continuum is majority owned by Morgan Stanley Infrastructure Partners with over 80% stake, while the rest is with the promoters. It was set up in 2009 by IIM-Ahmedabad classmates Bansal and Vikash Saraf of Essar Group. It operates wind energy capacity of 404 MW in the country.

Globally, the wind energy market is abuzz with merger and acquisition activities, with 2015 being a record year that saw 74 deals in the sector worth $15.4 billion as against 54 deals worth $11.8 billion in 2014. Mercom Capital Group, a global clean energy communications and research firm, said in a recent report, “The government has shown a strong commitment to renewables and it’s push towards solar is beginning to show results, at the end of FY2015-16, solar represented 2.5% of the net installed capacity in India, up from 1.4% a year ago, and was the fastest growing new energy source in the country.”

“To save the environment and to fight climate change, my government has planned a major campaign. By 2022, we want to generate 175 GW of renewable energy. In the last three years, we have already achieved 60 GW or around one-third of this target,” he said.